Changes to the instant asset write-off has been passed by the Senate and House of Representatives this morning, increasing the threshold to $30,000 and expanding eligibility to medium sized business with a turn over of less than $50 million.
While this amendment has passed, it does not become law until it receives Royal Assent.
The amendment mean that the instant asset write off threshold will effectively create 3 tiers of thresholds and start dates in the 2019 financial year:
Tier 1: $20,000 threshold for depreciable assets that are acquired before 29 January 2019 for businesses with a turnover of less than $10 million
Tier 2: $25,000 threshold for assets acquired 29 January 2019 and 2 April 2019 for businesses with a turnover of less than $10 million
Tier 3: $30,000 threshold for assets acquired after the budget announcement on 2 April 2019 and before 1 July 2020 for businesses with a turnover of less than $50 million
If you would like further information on your eligibility to the instant asset write off or any advice in relation to determining eligible assets, please don't hesitate to contact us.